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May 31, 2023
Commercial Metals Q3 2023 Earnings Report
Commercial Metals' third quarter performance was marked by strong financial results, driven by robust North American construction activity and effective cost management.
Key Takeaways
Commercial Metals Company reported strong third quarter fiscal 2023 results with net earnings of $234.0 million, or $1.98 per diluted share, on net sales of $2.3 billion. The North America segment achieved EBITDA growth both sequentially and year-over-year. The company's balance sheet and liquidity position remained strong with cash and cash equivalents totaling $475.5 million.
Third quarter net earnings increased 30% from the previous quarter.
Core EBITDA increased 29% sequentially.
North America segment adjusted EBITDA grew sequentially and year-over-year.
North America new project bid volumes increased by a double-digit percentage vs. prior year.
Commercial Metals
Commercial Metals
Commercial Metals Revenue by Segment
Revenue by Segment
NA Steel Group Revenue
CapyFin.comEurope Steel Group Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
The company expects financial performance to remain strong during the fourth quarter of fiscal 2023. North America finished steel product shipments are anticipated to be consistent with the third quarter, and margin levels in North America should be similar to the third quarter. Results in the Europe segment are expected to be relatively unchanged from the third quarter.
Positive Outlook
- North America finished steel product shipments are anticipated to be consistent with the third quarter.
- Healthy end market demand in North America.
- Historically high downstream backlog in North America.
- Margin levels in North America should be similar to the third quarter.
- CMC will leverage its market leading cost position to maintain profitability in Europe.
Challenges Ahead
- Continued economic uncertainty in Europe.
- Europe end market conditions softened during the quarter.
- Polish construction activity decelerated.
- Industrial production across Central Europe remained muted.
- Lower margins over scrap in Europe.
Revenue & Expenses
Visualization of income flow from segment revenue to net income